This week's macro data from the USA was mixed - a high CPI reading and weak retail sales data sent mixed signals about the impact of monetary policy. The release of the FOMC meeting minutes next week may provide more information on why the Fed is not convinced about cutting rates. In addition to the minutes, investors will also receive the Nvidia earnings report - the star of the ongoing AI rally! Remember to watch USDTRY, DE40, and US100 in the upcoming week.
USDTRY
USDTRY is one of the currency pairs that might see some movement this week. This is due to investors receiving the interest rate decision from the Central Bank of the Republic of Turkey on Thursday at 11:00 AM GMT, as well as the FOMC meeting minutes on Wednesday at 7:00 PM GMT. The Turkish central bank is expected to keep interest rates unchanged after 8 consecutive interest rate hikes, which raised the one-week repo rate from 8.50% to 45.00%. The FOMC minutes may clarify why Fed Chair Powell and other central bankers are not convinced about a rate cut.
DE40
DE40, along with other European indices, may experience increased volatility on Thursday morning when preliminary February PMIs from the Old Continent are published. As usual, the focus will mainly be on releases from France (8:15 AM GMT) and Germany (8:30 AM GMT). Market expectations suggest a slight improvement in both the manufacturing and services sectors. However, both sectors are expected to remain in the contraction zone. DE40 is recording record levels, and PMI readings could provide more fuel for growth.
US100
Most of the gains on Wall Street in 2023 were driven by artificial intelligence. Nvidia has become investors' favorite stock in the field of artificial intelligence, and its share price has risen by over 200% last year. On Wednesday after the Wall Street session closes, the company will publish its financial report for the fourth quarter of 2024 (calendar period from November 2023 to January 2024). Failing to meet market expectations could lead to a deterioration in sentiment in the technology sector and a potential correction in the stock market. On the other hand, solid results could drive gains on US100 and allow the index to reach new all-time highs.
